Why This Investor Keeps Buying Netflix Shares On Weakness

With Netflix Inc NFLX down more than 40% from its 52-week highs, buyers smell blood in the water and have been circling the name like sharks.

Shortly after Pershing Square's Bill Ackman revealed he bought more than 3.1 million shares of the streaming giant, an SEC filing showed Netflix co-CEO Reed Hastings bought more than 50,000 shares.

Short Hills Capital's Steve Weiss joined in on the feeding frenzy this week.

Related Link: What Are Whales Doing With Netflix

"I think they really stand alone in terms of their value offering to viewers," Weiss said Friday on CNBC's "Fast Money Halftime Report." "That's why I bought it."

He started buying Netflix shares above where it's trading now, but has been adding over the past two days in order to size up his trading position.

"I think the stock will recover," Weiss said. "I still have conviction in it, but I don't think I'll be there for years."

He highlighted Netflix's "unique franchise" and stressed that the company's content creates a much better value for consumers than its competitors.

NFLX Price Action: Netflix has traded as low as $351.46 and as high as $700.98 over a 52-week period.

The stock was up 0.68% at $408.36 Friday afternoon.

Photo: Tumisu from Pixabay.